Want a more profitable wealth management practice? Technology gets you there

By Stephen Newman

Today’s wealth managers are always looking for ways to enhance their client service. Our recent webinar looked at a number of trends in the marketplace and how managers can provide clients with more personal service while still efficiently managing their businesses, growing their client base, and ensuring they’re on top of compliance obligations.

Current market trends include aggressive competition, regulatory reform, and the need for better relationship management.

There has always been competition, but today, competitors who use “robo” technology are further dividing the investment pie. “Robo” advisors, while impersonal, scale operations and lower costs. However, many clients still want that personalized touch. Employing the right balance of soft touches along with professional statements and online viewing tools seems to lead to the best outcomes.

Compliance and regulatory changes are an unwelcome reality in today’s wealth management world. Managers are constantly seeking ways to comply more efficiently. The three most pressing regulatory changes are the DOL fiduciary rule, the revised advisers act for disclosure to clients, and the new ADV performance reporting rules. It’s easy to say that there is no ROI for compliance, however, complying with the applicable rules is priceless. To keep costs low, managers must use technology to streamline the collection and reporting of data.

Changes in a manager’s client base drive the speed of change in technology. For example, retaining assets can be challenging when inter-generational transfers happen. Going from the matriarch of a family to the next generation requires managers to change the delivery and touch points along the way. Having the technology to deliver info that a potential millennial client wants when a manager has been delivering a high-touch personalized experience to the parents can make if feel as though the manager runs two separate wealth practices. Employing the correct technology and being able to provide transparency eases the transition and creates an efficient multi-generational practice.

For more in-depth information, watch our webinar.

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